RNS Number : 1588K
Watches of Switzerland Group PLC
04 December 2025
4 December 2025
Watches of Switzerland Group PLC
H1 FY26 Results
for the 26 weeks to 26 October 2025 (H1 FY26)
Strong H1 FY26 performance driven by robust US growth
Group Adjusted EBIT £69 million, an increase of 6%1 vs prior year
FY26 guidance reiterated
Brian Duffy, Chief Executive Officer, said:
"We have delivered a strong first half, with Group revenue up 10% in constant currency, and good levels of profitability with Group Adjusted EBIT2 of £69 million, up 6%1, along with strong free cash flow and return on capital employed.
"The US remains the key driver of our performance, with robust demand across brands and categories, and the region now makes up almost 60% of our profitability. One year in, we are even more excited about the scale of the opportunity for Roberto Coin and Hodinkee. In the UK, trading has been resilient in a challenging market, underpinned by the stability of the luxury watch segment and the strength of our consumer proposition, with particular success at our flagship boutiques.
"We welcome the recent reduction in US tariffs on Swiss imports, which is a positive development for the sector.
"The second half of the year has started well. Trading is in line with expectations, and we are well placed as we enter the Holiday trading period. Whilst we remain mindful of the external economic and geopolitical environment, we are confident in the strength of our business and our differentiated offering, and have reiterated our FY26 guidance."
(£million)
26 weeks ended 26 October 2025
26 weeks ended 27 October 2024
YoY change Reported rates
YoY change Constant currency1
Group revenue
845
785
+8%
+10%
UK and Europe
436
430
+2%
+2%
US
409
355
+15%
+20%
Adjusted EBITDA2
91
87
+4%
Adjusted EBITDA margin2
10.8%
11.1%
(30)bps
Adjusted EBIT2
69
66
+4%
+6%
Adjusted EBIT margin2
8.1%
8.4%
(30)bps
Adjusted basic EPS2 (p)
19.6
18.1
+8%
Statutory operating profit
79
60
+32%
Statutory profit before tax
61
41
+50%
Statutory basic EPS (p)
19.1
12.2
+57%
Free cash flow2
48
28
+71%
Return On Capital Employed2
17.3%
16.5%
+80bps
Net debt2
112
120
(7)%
Group revenue £845 million, +10% at constant currency, +8% at reported rates
· Luxury watch demand remained strong, with continued growth in client Registration of Interest lists
· Luxury jewellery represented 12% of Group revenue driven by strong performance in luxury branded jewellery
· Roberto Coin wholesale sales +16% in constant currency, +12% at reported rates, supported by successful new product launches and an effective advertising campaign
· Certified Pre-Owned continued to perform well. Rolex Certified Pre-Owned, our second largest watch brand, is now in all US Rolex agencies. Expansion plans for remaining UK agencies are underway
· Group ecommerce3 revenue increased +17% on last year in constant currency reflecting our successful digital investments
Group Adjusted EBIT £69 million, +6% in constant currency, +4% at reported rates
· Adjusted EBIT margin 8.1%, -30 bps vs prior year reflecting changes in gross margin rates and product mix
· Strong growth in the US which made up 59% of Group Adjusted EBIT and 48% of Group revenue
· Total US Adjusted EBIT for H1 FY26 (including Roberto Coin wholesale) was up 16% to £40.6 million, with Adjusted EBIT margin % up 10bps to 9.9%
· UK & Europe Adjusted EBIT for H1 FY26 was £30.8 million, a reduction of £3.9 million (-11%) versus last year, with Adjusted EBIT margin % of 7.1%, 100bps lower than last year
· Group statutory profit before tax £61 million, +50% vs prior year
Strong free cash flow and balance sheet position
· Free cash flow of £48 million, +71% vs prior year, with conversion2 of 53% an improvement from 32% in the prior year
· Ongoing investment in showroom developments, with expansionary capital expenditure5 of £37 million
· Completion of the £25 million share buyback programme
· Net debt of £112 million as at 26 October 2025 (27 October 2024: £120 million), with 0.6x net debt/EBITDA2 leverage
· Return on Capital Employed improved to 17.3%, +80bps vs H1 FY25, reflecting efficient capital deployment and robust profitability
US revenue £409 million, +20% at constant currency, +15% at reported rates
· Sustained broad-based growth across brands and price points, reflecting the success of our model and strength of client demand
· US tariffs on Swiss imports now agreed at 15% on landed cost, reduced from 39% in place previously
· Investment in driving US ecommerce, including successful re-platforming of the Watches of Switzerland and Roberto Coin US ecommerce sites
· Roberto Coin sales through our retail channels more than doubled vs prior year, following the implementation of shop-in-shop branded displays and successful marketing. There is an opportunity to roll this concept out to wholesale partners
· Three new Roberto Coin mono-brand boutiques: New York (opened November 2025); Las Vegas (opening December 2025); Miami set to open in January 2026
UK4 revenue £436 million, +2% at reported rates, +5% adjusting for showroom closures
· Resilient performance in a challenging retail environment
· Strong momentum across flagship boutiques, with the flagship Rolex Boutique on Old Bond Street outperforming expectations
· Strong ecommerce growth in the UK
H1 FY26 Operational Highlights
· Good progress with our showroom development programme, with eight projects completed in H1 FY26 and a further six completed at the date of this announcement
· Confirmed relocation of Rolex Boutique Heathrow T5, to open in Summer 2026, following the relocation of the Watches of Switzerland multi-brand showroom planned to open in December 2025
· Hodinkee integration on track and development of growth strategy has progressed. Launched limited edition product with Nivada Grenchen and Maison Alcee, which sold out rapidly
· Flagship Rolex Boutique on Old Bond Street, London continues to outperform, and achieved a Net Promoter Score of 94.5%
· Exit of the European business is now complete
Outlook
We welcome the recent reduction in US tariffs on Swiss imports, which is a positive development for the sector.
The second half of the financial year has started well, with trading in line with expectations. We are well positioned as we enter the Holiday trading period. Whilst we remain mindful of the external economic and geopolitical environment, we are confident in the strength of our business and our differentiated offering and have reiterated our FY26 guidance.
Guidance reflects current visibility of supply from key brands and confirmed showroom refurbishments, openings and closures, and excludes uncommitted capital projects and acquisitions.
Constant currency revenue growth
6% - 10%
Adjusted EBIT margin %
Flat to -100 bps vs prior year
Capital expenditure
£65 - £70 million
The Group is exposed to movements in the £/$ exchange rate when translating the results of its US operations into Sterling. The actual average exchange rate for FY25 was $1.28.
H1 FY26 Revenue Performance by Geography
H1 FY26
H1 FY25
H1 FY26 vs H1 FY25
(£million)
26 weeks to 26 Oct 2025
26 weeks to 27 Oct 2024
Reported YoY %
Constant currency YoY %
UK
436
426
+2%
+2%
Europe
-
4
UK & Europe total
436
430
+2%
+2%
US retail
355
306
+16%
+21%
US Roberto Coin wholesale
56
50
+12%
+16%
Intercompany eliminations
(2)
(1)
US total
409
355
+15%
+20%
Group Revenue
845
785
+8%
+10%
H1 FY26 Revenue Performance by Category
H1 FY26
H1 FY25
H1 FY26 v H1 FY25
(£million)
26 weeks to 26 Oct 2025
26 weeks to 27 Oct 20246
Reported YoY %
Constant currency YoY %
Luxury watches
708
655
+8%
+10%
Luxury jewellery
102
95
+6%
+10%
Services/other
35
35
+1%
+2%
Group Revenue
845
785
+8%
+10%
H1 FY26 Results Presentation
A webcast conference call for analysts and investors will be held at 9.00am (UK time) today. To join the call, please use the following details:
Webcast details:
Register at: https://brrmedia.news/WOS_HY_2026
Conference call dial-in details:
United Kingdom: +44 (0) 33 0551 0200
United Kingdom (Toll-Free): 0808 109 0700
Password: Watches of Switzerland HY26
Engage Investor
We are also pleased to announce that our leadership team will host a live interactive presentation on the Engage Investor platform at 2.00pm (UK time) today. We welcome all current shareholders and interested investors to join.
Register interest in this event here:
https://engageinvestor.news/WOS_IP_1225
Contacts
The Watches of Switzerland Group
Anders Romberg, CFO
+44 (0) 207 317 4600
Caroline Browne, Group Finance and Investor Relations Director
+44 (0) 116 281 7420
investor.relations@thewosgroup.com
Headland
Lucy Legh / Rob Walker / Scarlett Hateley
+44 (0) 203 805 4822
wos@headlandconsultancy.com
About the Watches of Switzerland Group
The Watches of Switzerland Group is the UK's largest luxury watch retailer, operating in the UK and US comprising seven prestigious brands; Watches of Switzerland (UK and US), Mappin & Webb (UK), Goldsmiths (UK), Mayors (US), Betteridge (US), Analog:Shift (US) and Hodinkee (US), with a complementary jewellery offering. Since 8 May 2024, the Group has also owned the exclusive distribution rights for Roberto Coin in the US, Canada, Central America and the Caribbean.
As at 26 October 2025, the Watches of Switzerland Group had 196 showrooms across the UK and US including 84 dedicated mono-brand boutiques in partnership with Rolex, OMEGA, TAG Heuer, Breitling, TUDOR, Longines, Grand Seiko, Roberto Coin, BVLGARI and FOPE and has a leading presence in Heathrow Airport with representation in Terminals 2, 3, 4 and 5 as well as seven retail websites.
The Watches of Switzerland Group is proud to be the UK's largest retailer for Rolex, OMEGA, Cartier, TAG Heuer and Breitling watches.
www.thewosgroupplc.com
Chief Executive Officer's Review
We have delivered a strong first half, with Group revenue up 10% at constant currency (+8% reported) to £845 million, demonstrating continued momentum across the Group reflecting the strength of our business model, disciplined strategy execution, and favourable market trends in the US. H1 FY26 Adjusted EBIT was £69 million up 4% on last year, with Adjusted EBIT margin % down 30 bps to 8.1%. Statutory profit before tax was £61 million, up 50% vs prior year.
Demand for luxury watches remains robust, consistently exceeding supply, with ongoing additions to and conversions of the client Registration of Interest lists.
We are pleased with the progress seen across our markets, with the US as the standout performer. Sales in this market were up 20% in constant currency, driven by broad-based growth across brands and categories throughout the period. Investments in our teams, showrooms and digital offer are driving growth in all our markets.
In November 2025, we welcomed the agreement between the US and Switzerland to reduce US tariffs on Swiss imports to 15%, from the 39% tariff which has been in place since 7 August 2025. This new rate provides greater clarity and assurances for the sector. Notably, we have observed no significant change in consumer behaviour following the introduction of the initial tariffs, underscoring the continued robust demand for luxury watches and jewellery in the US.
In the UK, our business performed well despite ongoing challenges facing the UK High Street, with revenue up 5% adjusting for showroom closures. Our flagship Rolex boutique on Old Bond Street, the largest in Europe, continues to outperform expectations, delivering exceptional service and experiences to our clients every day.
Certified Pre-Owned continues to perform strongly and in line with expectations. Our scale and expertise in sourcing, valuing and servicing products differentiates us in this market. Rolex Certified Pre-Owned, our second biggest watch brand, is now in all US Rolex agencies. Plans to expand this offering into remaining UK agencies are in place.
We have invested into driving ecommerce, including the successful re-platforming of the Watches of Switzerland and Roberto Coin US ecommerce sites, with Mayors and Betteridge to follow. Investment into ecommerce has resulted in Group ecommerce sales growth of +17% vs the prior period in constant currency. Ecommerce is an important part of the client journey and multi-channel offering of the Group.
We are encouraged by the progress in luxury jewellery, with Group luxury jewellery revenue up 10% at constant currency. This growth is driven by good performance in luxury branded jewellery and Roberto Coin wholesale. In our first full year of ownership, Roberto Coin wholesale has delivered excellent results with sales +16% in constant currency, through the implementation of our growth acceleration strategy, supported by a positive market response to new product and advertising campaigns.
The introduction of new Roberto Coin shop-in-shop branded displays in our US retail showrooms has more than doubled sales. There is an opportunity to roll this concept out to wholesale partners to drive their productivity with the brand. In November 2025 we opened one Roberto Coin mono-brand boutique in Hudson Yards, Manhattan. Further openings will take place at The Forum, Las Vegas in December 2025, and at the Miami Design District in January 2026.
We were pleased to open the new concept Mappin & Webb luxury jewellery boutique in Manchester in September 2025 to excellent client feedback. This boutique includes a number of luxury jewellery brands including a De Beers mono-brand boutique.
Hodinkee continues to be the go-to, global destination for luxury watch enthusiasts offering digital print and video content, limited edition watch collaborations and watch and jewellery insurance services. Integration of this business is going well, and we are seeing great potential to leverage the Hodinkee follower base to broaden our client base and data insight. During the period Hodinkee have been involved in several watch events, including client events in our showrooms and the UBS House of Craft. They have also created limited edition products with Nivada Grenchen and Maison Alcee which sold out rapidly.
We continue to make good progress with our showroom development programme, which drives sustained growth and showcases world-class retail experiences. Projects completed in H1 FY26 and pipeline for the remainder of the financial year include:
· Completed in H1 FY26
· New Audemars Piguet House, Manchester operating as a joint venture - May 2025
· Refurbishment of Goldsmiths Kingston-Upon-Thames - May 2025
· Refurbishment of Newcastle Goldsmiths - retailing Rolex since 1919 - July 2025
· Relocation of Mayors Lenox, Atlanta - August 2025
· Expansion of Mappin & Webb Cambridge - August 2025
· Relocation of Goldsmiths Merry Hill, Birmingham - September 2025
· New Mappin & Webb luxury jewellery boutique, Manchester - September 2025
· Relocation of Goldsmiths Peterborough - September 2025
· Exciting pipeline of projects for H2 FY26
· New Watches of Switzerland Southdale, Minneapolis - opened October 2025
· Relocation of Mayors Sarasota, Florida - opened November 2025
· Expansion of Goldsmiths Oxford - opened November 2025
· Expansion and conversion of Mappin & Webb Birmingham - December 2025
· Relocation of Watches of Switzerland Heathrow T5 - December 2025
· Three new Roberto Coin mono-brand boutiques in New York (opened November 2025), Las Vegas (opening December 2025) and Miami (opening January 2026)
· Rolex boutique Glasgow currently being expanded, opening in Summer 2026
· Confirmed relocation of Rolex Boutique Heathrow T5, to open in Summer 2026
Finally, I would like to thank our teams who continue to inspire and deliver. Their hard work and commitment are what enable the Group to succeed. Our continued strong performance reflects the strength of our model, consistent execution of our growth strategy and the talent we have across the Group.
Financial Review
An extract of the Group's Consolidated Income Statement is shown below which is presented including IFRS 16 'Leases' and exceptional items.
Income Statement - post-IFRS 16 and exceptional items (£million)
26 weeks to 26 October 2025
26 weeks to 27 October 2024
YoY variance
Revenue
845.1
784.8
8%
Operating profit
79.4
60.2
32%
Net finance cost
(18.5)
(19.7)
6%
Profit before taxation
60.9
40.5
50%
Taxation
(16.5)
(11.6)
(44)%
Profit for the financial period
44.4
28.9
53%
Basic earnings per share
19.1p
12.2p
57%
Management monitors and assesses the business performance on a pre-IFRS 16 and exceptional items basis, which is shown below. This aligns to the reporting used to inform business decisions, investment appraisals, incentive schemes and debt covenants. A full reconciliation between the pre- and post-IFRS 16 results is shown in the Glossary.
Income Statement - pre-IFRS 16 and exceptional items (£million)
26 weeks to 26 October 2025
26 weeks to 27 October 2024
YoY variance
Revenue
845.1
784.8
8%
Net margin2
298.7
284.3
5%
Net margin %
35.3%
36.2%
(90)bps
Showroom costs
(146.9)
(141.6)
(4)%
Overheads
(57.4)
(50.6)
(13)%
EBITDA2
94.4
92.1
3%
Showroom opening and closing costs
(3.6)
(4.8)
24%
Adjusted EBITDA2
90.8
87.3
4%
Adjusted EBITDA margin %
10.8%
11.1%
(30)bps
Depreciation, amortisation and loss on disposal of fixed assets
(22.3)
(21.1)
(6)%
Adjusted EBIT2(segment profit)
68.5
66.2
4%
EBIT margin %
8.1%
8.4%
(30)bps
Net finance costs
(5.9)
(7.3)
19%
Adjusted profit before taxation
62.6
58.9
6%
Adjusted earnings per share2
19.6p
18.1p
8%
Revenue
Revenue by geography and category
26 weeks to 26 October 2025(£million)
UK and Europe
YoY % Reported
US
YoY % Reported
Total
YoY % Reported
Mix
Luxury watches6
379.4
+2%
328.7
+17%
708.1
+8%
84%
Luxury jewellery retail
29.5
-%
18.4
+10%
47.9
+3%
5%
Luxury jewellery wholesale
-
-%
56.3
+12%
56.3
+12%
7%
Eliminations
-
-%
(2.4)
(2.4)
-
Services/other6
27.5
-1%
7.7
+9%
35.2
+1%
4%
Total revenue
436.4
+2%
408.7
+15%
845.1
+10%
100%
Group revenue of £845 million increased by 10% at constant currency, +8% at reported rates from prior year, driven by a strong performance in our US market.
Group revenue from luxury watches grew by 8% on the prior year. Demand for our key brands, particularly products on Registration of Interest lists, continues to be strong, with consistent additions and conversions. We remain encouraged by the performance of our pre-owned business with Rolex Certified Pre-Owned, our second biggest brand, now in all agencies in the US and 26 in the UK with plans for full rollout into all agencies. Luxury Watches made up 84% of revenue versus 83% in H1 last year.
Group luxury jewellery revenue, excluding wholesale, increased by 3% on the prior year, UK sales were flat but +7% growth when the impact of closed showrooms is reflected. The majority of luxury jewellery sold by the Group is retailed under our house brands of Goldsmiths, Mappin & Webb, Mayors and Betteridge. Our strategy is to grow our luxury branded jewellery offering, where we partner with other major luxury jewellery brands. Luxury branded jewellery sales continue to outperform non-branded jewellery.
Services/other revenue, consisting of servicing, repairs, insurance services and the sale of fashion and classic watches and other non-luxury jewellery, grew by 1%.
Group ecommerce3 sales increased by 17% compared to the prior year in constant currency, investment in the US drove strong growth including the successful re-platforming of the Watches of Switzerland and Roberto Coin US ecommerce sites. We continue to be the market leader in ecommerce for luxury watches and jewellery in the UK and growth was seen across all product categories in the half.
US revenue increased by 20% year-on-year in constant currency (+15% reported) and the US business made up 48% of the Group's revenue in H1 FY26 (H1 FY25: 45%). Luxury watch sales remained strong across brands and price points, with luxury watches outperforming the rest of the portfolio. Several brands raised prices in the period in response to ongoing cost pressures from gold and exchange rates, alongside additional tariffs on the landed cost of Swiss exports. Customer demand and interest in the category remained positive throughout the period.
During the half, a refurbished Mayors multi-brand showroom opened in Lenox, Atlanta following the opening of the standalone Rolex boutique in H2 FY25. In October 2025, we opened a new Watches of Switzerland Southdale, Minneapolis and work is progressing on the refurbishment of Betteridge Greenwich, Connecticut, due to open in Summer 2026.
We continue to integrate Roberto Coin into the business in our first full year of ownership. Updated product ranges and a new advertising campaign received positive feedback from partners. Within our retail network the implementation of shop-in-shop displays in our retail network has generated strong returns. Wholesale revenue in the period grew by 16% at constant currency, +12% at reported rates.
UK and Europe revenue increased by 2% during the period, +5% when the impact of showroom closures is reflected. This was a good performance in a challenging retail environment. Strong momentum across our flagship boutiques, with Rolex Old Bond Street outperforming. Sales in the UK continue to be driven by a domestic clientele with ongoing tourist sales significantly below performance seen when tax free shopping was available.
In September 2025 we opened our new concept Mappin & Webb luxury jewellery boutique in Manchester to strong client feedback. Ten UK non-core showrooms were closed in the half, in addition to the 14 closed in FY25, allowing us to consolidate our portfolio and drive productivity across our estate.
Six projects were completed enhancing our existing estate to further elevate the partner brands we display in those showrooms and advance our client experience, these included our first ever Rolex agency on Blackett Street, Newcastle. Our two remaining European showrooms were divested to brand partners in the period.
Profitability
Group Adjusted of EBIT £69 million was +6% vs prior year in constant currency, +4% at reported rates. Adjusted EBIT margin % was 8.1%, -30 bps vs prior year due to gross margin rates and product mix. The US was the major growth area and represented 48% of Group sales and 59% of Group Adjusted EBIT.
US Income Statement - pre-IFRS 16 and exceptional items (£million)
US Retail
US Wholesale
Eliminations
US Total
26 weeks to 26 October 2025
26 weeks to 27 October 2024
YoY variance
26 weeks to 26 October 2025
26 weeks to 27 October 2024
YoY variance
26 weeks to 26 October 2025
26 weeks to 27 October 2024
26 weeks to 26 October 2025
26 weeks to 27 October 2024
YoY variance
Revenue
354.8
305.6
+16%
56.3
50.4
+12%
(2.4)
(1.1)
408.7
354.9
+15%
Net margin
124.2
110.1
+13%
23.6
20.6
+15%
-
-
147.8
130.7
+13%
Net margin %
35.0%
36.0%
(100)bps
41.9%
40.9%
+100bps
-
-
36.2%
36.8%
(60)bps
Adjusted EBIT
29.0
24.0
+21%
11.6
10.9
+6%
-
-
40.6
34.9
+16%
Adjusted EBIT %
8.2%
7.9%
+30bps
20.6%
21.6%
(100)bps
-
-
9.9%
9.8%
+10bps
Total US Adjusted EBIT for H1 FY26 was up 16% to £40.6m, with Adjusted EBIT margin % up 10bps to 9.9%.
Within US retail, Adjusted EBIT for H1 FY26 was £29.0 million, an increase of £5.0 million (+21%) versus last year, this equated to an Adjusted EBIT margin % of 8.2%, +30bps favourable to last year. Net margin % was 35.0%, down 100bps in the period driven by product mix and reduction in brand margins following the imposition of US tariffs and higher gold prices.
Fixed cost leverage was gained on the sales increase of 16%, with costs rising at a slower rate than sales. Cost increases were driven from the annualisation of associated overheads from the acquisition of Hodinkee, variable costs from sales growth (predominantly commission and credit card fees), and investment into ecommerce to support the roll out of the new Watches of Switzerland and Roberto Coin US websites.
US wholesale Adjusted EBIT of £11.6 million was an increase of £0.7 million (+6%) versus last year, this equated to an Adjusted EBIT margin % of 20.6% versus 21.6% in the prior year. Net margin % was up 100bps to 41.9% following price increases implemented during the period. The Group invested into additional marketing in Roberto Coin, including the marketing campaign with Dakota Johnson, which has supported sales growth during the period.
UK & Europe Income Statement - pre-IFRS 16 and exceptional items (£million)
Profitability
26 weeks to 26 October 2025
26 weeks to 27 October 2024
YoY variance
Revenue
436.4
429.9
+2%
Net margin
150.9
153.6
-2%
Net margin %
34.6%
35.7%
(110)bps
Adjusted EBIT
30.8
34.7
-11%
Adjusted EBIT %
7.1%
8.1%
(100)bps
Adjusted EBIT for H1 FY26 was £30.8 million, a reduction of £3.9 million (-11%) versus last year, this equated to an Adjusted EBIT margin % of 7.1%, 100bps adverse to last year. Net margin % was 34.6% in the period, 110bps adverse to last year, driven by product mix and fewer price rises where benefit is gained from selling inventory bought prior to price rises.
Exceptional items
Exceptional items are defined by the Group as those which are significant in magnitude or are linked to events which are expected to be infrequent in nature. Total exceptional items increased profit by £0.9 million.
Exceptional items (£million)
26 weeks to 26 October 2025
26 weeks to 27 October 2024
Lease related gains
1.8
-
Showroom closure costs
(0.7)
-
Business acquisition costs
(0.2)
(0.7)
Rolex Old Bond Street
-
(2.4)
Showroom impairment
-
(13.4)
Total exceptional items
0.9
(16.5)
Lease related gains
Early lease exit settlements were negotiated for a number of closed showrooms in the period. This resulted in a £1.3 million lease surrender gain. The Group further sublet one lease which resulted in a £0.5 million gain. These have been recognised as exceptional items as they do not form part of the underlying trading of the Group, and partly offset impairment charges taken to exceptional items in the prior period.
Showroom closure costs
Showroom closure costs include £0.4 million of redundancy costs, and £0.3 million for business rates in relation to closed showrooms.
Business acquisitions costs
Professional, legal expenses and integration expenses in relation to business combinations have been expensed as an exceptional cost as they are regarded as non-trading, non-underlying costs. The amount incurred in the current period relates to acquisitions made in the previous year.
Adjusted EBIT and operating profit
As a result of the items noted above, Adjusted EBIT was £68.5 million, an increase of £2.3 million, +4% on the prior year. After accounting for exceptional gains of £0.9 million and IFRS 16 adjustments of £10.0 million, operating profit as presented on the face of the Interim Condensed Consolidated Income Statement was £79.4 million, an increase of £19.2 million, +32% on the prior year.
Finance costs
Net finance costs (£million)
26 weeks to 26 October 2025
26 weeks to 27 October 2024
Pre-IFRS 16 net finance costs, excluding exceptionals
5.9
7.3
IFRS 16 interest on lease liabilities
12.8
11.1
Reversal of pre-IFRS 16 onerous lease interest
(0.2)
-
Total net finance costs, excluding exceptionals
18.5
18.4
Interest payable on borrowings decreased in the period following a reduction of net debt and interest rates. The impact was a net decrease in the pre-IFRS 16 interest charge of £1.4 million to £5.9 million. The IFRS 16 interest on lease liabilities increased by £1.7 million due to the larger estate following expansions and new showrooms.
Taxation
The pre-IFRS 16 Effective Tax Rate for the period before exceptional items was 27.5%. The statutory (post-IFRS 16 and including exceptionals) effective tax rate was 27.2%. This is higher than the applicable UK corporation tax rate for the year of 25.0% as a result of higher chargeable taxes on US profits and the impact of expenses disallowed for corporation tax. Further detail can be found in note 6 within the Interim Condensed Consolidated Financial Statements.
Balance Sheet
Balance Sheet (£million)
26 October 2025
27 April 2025
27 October 20247
Goodwill and intangibles
303.8
304.1
308.2
Property, plant and equipment
212.0
192.4
203.5
Right-of-use assets
362.1
358.6
369.0
Investment in joint venture and associates
0.5
0.5
-
Inventories
502.8
447.4
481.2
Trade and other receivables
51.6
60.5
60.4
Trade and other payables
(256.9)
(259.5)
(281.1)
Lease liabilities
(454.6)
(454.6)
(454.3)
Net debt
(112.4)
(96.2)
(119.5)
Other
(23.8)
(13.6)
(19.8)
Net assets
585.1
539.6
547.6
Goodwill and intangibles decreased by £0.3 million in the period, as a result of £0.6 million amortisation of brands and agency agreements, and a £0.1 million favourable exchange impact. A further £1.3 million of computer software additions were made in the year as part of ongoing IT investments, offset by amortisation of £1.1 million.
Property, plant and equipment increased by £19.6 million in the period. Additions of £40.4 million and favourable foreign exchange movements of £0.1 million were offset by depreciation of £20.2 million and disposals of £0.7 million. Including software costs, which are disclosed as intangibles, capital additions (including accruals) were £41.7 million in the period, of which £40.5 million was expansionary. Expansionary capex relates to new showrooms, relocations or major refurbishments (defined as costing over £0.25 million). In the period, the Group opened one new showroom and refurbished seven showrooms. Investment in our portfolio is paramount to our strategy and drives sales and returns. The Group follows a disciplined payback policy when making capital investment decisions, the internal hurdle for showroom investments is a cash payback of under three years (investment in fixed assets and inventory divided by showroom EBITDA).
Right-of-use assets increased by £3.5 million in the period, to £362.1 million. Additions to the lease portfolio along with lease renewals or other lease changes were £29.7 million. This has been offset by depreciation of £26.3 million. The remaining movement is a £0.1 million favourable foreign exchange impact.
Lease liabilities remained in line with the prior year. The portfolio changes noted above increased the lease liability by £28.4 million. Interest charged on the lease liability was £12.8 million and there was a £0.1 million adverse foreign exchange impact. Lease payments were £41.3 million, giving a final lease liability balance of £454.6 million.
Inventory levels increased by £21.6 million (4%) compared to H1 FY25. The increase of inventory relates to targeted investment in strategic brand partnerships, increases as a result of US tariffs, and the introduction of lab grown diamonds, partially offset through a reduction in underlying inventory to maintain stock turn at appropriate levels. The increase in inventory since April 2025 is driven by the normal trends in supporting the upcoming Holiday season. The inventory obsolescence risk remains low for the Group.
Trade and other receivables decreased by £8.8 million compared to H1 FY25. The notable reason for the decrease being £9.7 million of monies held in escrow in relation to business combinations which has been paid in the period. The balance also represents prepayments, rebate receivables, rent deposits and other ad hoc receivables such as property contributions.
Trade and other payables decreased by £24.2 million compared to H1 FY25. Notable reasons for the decrease being: £7.4 million of contingent consideration paid in relation to acquisitions, in addition to the £2.1 million net working capital true up payment (see note 15 of the Interim Condensed Consolidated Financial Statements) and payment of £9.7 million of acquisition balances held in third party escrow accounts as noted above.
Other includes taxation balances, defined benefit pension and capitalised finance costs.
Net debt and financing
Net debt on 26 October 2025 was £112.4 million, an increase of £16.2 million since 27 April 2025. The strong free cash flow of £48.4 million being utilised for £37.3 million of expansionary capex and £9.5 million in relation to acquisitions cash flow. We completed the £25 million share buyback programme in the period, with the final £13.8 million being paid in the first half of the year. Net debt/EBITDA leverage2 was 0.6x at the half year end.
Net debt post-IFRS 16 was £565.1 million. The value comprises the pre-IFRS 16 net debt of £112.4 million and the £454.6 million lease liability, offset by capitalised transaction costs of £1.9 million. The balance increased by £16.6 million (from £548.5 million) in the period, for the reasons noted above.
The Group's maximum amount available under its committed facility was £368.9 million at 26 October 2025.
Facilities held
Expiring
Amount (million)
Multicurrency revolving loan facility - UK SONIA +1.50% to +2.575%
May 2028
£275.0
Multicurrency term facility - UK SONIA +1.65% to +2.70%
May 2028
$125.0 / £93.9
£175.7 million of these facilities were drawn down at 26 October 2025. Liquidity headroom (defined as unrestricted cash plus undrawn available facilities) was £237.5 million. Further detail with regards to covenant tests and liquidity headroom can be found within the going concern section of note 1 of the Interim Condensed Consolidated Financial Statements.
Cash Flow
Cash Flow (£million)
26 weeks to 26 October 2025
26 weeks to 27 October 2024
Adjusted EBITDA
90.8
87.3
Share-based payment charge
0.7
1.7
Working capital
(29.4)
(41.6)
Pension contributions
(0.3)
(0.3)
Tax
(6.3)
(11.6)
Cash generated from operating activities
55.5
35.5
Maintenancecapex
(1.2)
(1.6)
Net interest
(5.9)
(5.6)
Free cash flow2
48.4
28.3
Free cash flow conversion2
53%
32%
Expansionary capex
(37.3)
(43.6)
Acquisitions (inc. contingent consideration)
(9.5)
(106.9)
Share buyback
(13.8)
-
Costs directly attributable to raising new loan facility
-
(0.3)
Disposal of property, plant and equipment
0.4
2.7
Exceptional items - cash
(4.1)
(2.7)
Cash flow
(15.9)
(122.5)
Net (repayment)/proceeds of borrowings
(19.9)
118.0
Net decrease in cash and cash equivalents
(35.8)
(4.5)
Free cash flow increased by £20.1 million to £48.4 million in the period to 26 October 2025 and free cash flow conversion was 53% compared to 32% in the prior year, primarily as a result of a lower working capital outflow in the period through disciplined inventory management.
Expansionary cash capex of £37.3 million was lower than the prior year due to a decrease in new showroom openings and refurbishments. In the period, the Group opened one new showroom and refurbished seven showrooms.
£13.8 million of shares were paid for in the period as part of the share buyback programme. The balance of the £25 million buyback programme was completed in June 2025.
Exceptional cash items of £4.1 million, includes £3.4 million of early lease settlements as detailed in note 4 to the Interim Condensed Consolidated Financial Statements.
Return on Capital Employed (ROCE)2
52weeks to 26 October 2025
52weeks to 27 October 2024
ROCE
17.3%
16.5%
H1 FY26 ROCE is 17.3%, an increase of 80bps in comparison to the prior year. This is as a result of last twelve month Adjusted EBIT increasing by 19.2%, compared to the increase in Average Capital Employed of 13.8%, reflecting efficient capital deployment and robust profitability.
Capital Allocation
The Group has a clear framework of capital allocation and is focused on optimising capital deployment for the benefit of all our stakeholders, with a focus on long-term sustainable growth in the business. It is also important for the Group to maintain financial and operational flexibility to be able to react tactically to opportunities, such as strategic acquisitions, at speed. Our capital allocation framework is as follows:
1. Showroom investments - given the attractive returns from showroom investments, this is our key focus area to allocate capital to. In H1 FY26 the Group spent £37.3 million in expansionary cash capex
2. Strategic acquisitions - this is a key pillar of our growth strategy. Acquisitions must deliver return on investment in line with our disciplined financial criteria, within an appropriate timeframe.
3. Returns to shareholders - in the event of surplus capital above and beyond the requirements of the business for investment into showrooms or strategic acquisitions, we would consider returns to shareholders either through ordinary dividends or share buybacks, with the appropriate mechanism to be decided at the appropriate time by the Board. During the prior period to 27 April 2025 the Group announced a £25 million share buyback programme. £11.3 million of shares were purchased and paid for in H2 FY25 with an additional £13.8 million purchased and paid for in H1 FY26. The programme completed in June 2025.
Showroom Portfolio
As at 26 October 2025, the Group had 196 showrooms. The movement in showroom numbers is included below:
UK multi-brand showrooms
UK mono-brand boutiques
Europe mono-brand boutiques
Total UK and Europe
US multi-brand showrooms
US mono-brand boutiques
Total US
Total Group
27 April 2025
89
57
2
148
25
35
60
208
Openings
1
-
-
1
-
-
-
1
Closures
(3)
(7)
(2)
(12)
-
(1)
(1)
(13)
26 October 2026
87
50
-
137
25
34
59
196
Footnote references
1 Growth shown in constant currency. Refer to Glossary for definition, purpose and reconciliations to statutory measures
2 This is an Alternative Performance Measure and is shown on a pre-IFRS 16 basis. Refer to the Glossary for definition, purpose and reconciliation to statutory measures where relevant
3 Ecommerce sales are sales which are transacted online
4 UK revenue excludes revenue from European operations which are now closed
5 Expansionary capex is defined as capital expenditure relating to new showrooms or offices, relocations or refurbishments greater than £250,000
6 In the period, the Group has reclassified the sales of certain watch brands from services/other into luxury watches. The 26 week period ended 27 October 2024 has been re-presented to allow for comparison
7 The 26 week period ended 27 October 2024 balances have been restated, in line with IFRS 3 'Business combinations', to reflect the finalisation of the provisional fair values of Roberto Coin Inc. and the Hodinkee business. Further detail is disclosed within note 15 of the Interim Condensed Consolidated Income Statement
Certain financial data within this announcement has been rounded. Growth rates are calculated on unrounded numbers.
Principal and emerging risks and uncertainties
The Group is exposed to a number of risks and uncertainties in its business which could impact its ability to effectively execute its strategy and cause actual results to differ materially from expected and/or historical results. The Board has undertaken a robust assessment of the principal and emerging risks and uncertainties facing the Group, including those that would threaten its business model, future performance, solvency or liquidity. The risks presented in the 2025 Annual Report and Accounts, described as follows, remain unchanged: Business strategy execution and development; Key suppliers and supply chain; Client experience and market risks; Colleague talent and capability; Data protection and cyber security; Business interruption; Regulatory and compliance; Economic and political; Brand and reputational damage; Financial and treasury; and Climate change. These are detailed on pages 148 to 153 of the 2025 Annual Report and Accounts, a copy of which is available on the Watches of Switzerland Group PLC (the 'Company') website at thewosgroupplc.com.
A full disclosure of the Group's principal risks and emerging risks and uncertainties, including the factors which mitigate them, are set out within the Strategic Report of the 2025 Annual Report and Accounts.
Disclaimer
This announcement has been prepared by Watches of Switzerland Group PLC (the 'Company'). It includes statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "anticipates", "expects", "intends", "plans", "goal", "target", "aim", "may", "will", "would", "could" or "should" or, in each case, their negative or other variations or comparable terminology. They appear in a number of places throughout this announcement and the information incorporated by reference into this announcement and may include statements regarding the intentions, beliefs or current expectations of the Company Directors or the Group concerning, amongst other things: (i) future capital expenditures, expenses, revenues, earnings, synergies, economic performance, indebtedness, financial condition, dividend policy, losses and future prospects; (ii) business and management strategies, the expansion and growth of the Group's business operations; and (iii) the effects of government regulation and industry changes on the business of the Company or the Group.
By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future and may be beyond the Company's ability to control or predict. Forward-looking statements are not guarantees of future performance. The Group's actual results of operations, financial condition, liquidity, and the development of the industry in which it operates may differ materially from the impression created by the forward-looking statements contained in this announcement and/or the information incorporated by reference into this announcement.
Any forward-looking statements made by or on behalf of the Company or the Group speak only as of the date they are made and are based upon the knowledge and information available to the Directors on the date of this announcement, and are subject to risks relating to future events, other risks, uncertainties and assumptions relating to the Company's operations and growth strategy, and a number of factors that could cause actual results and developments to differ materially from those expressed or implied by the forward-looking statements. Undue reliance should not be placed on any forward-looking statements and, except as required by law or regulation, the Company undertakes no obligation to update these forward-looking statements. No statement in this announcement should be construed as a profit forecast or profit estimate.
Before making any investment decision in relation to the Company you should specifically consider the factors identified in this document, in addition to the risk factors that may affect the Company or the Group's operations as detailed above.
WATCHES OF SWITZERLAND GROUP PLC
UNAUDITED INTERIM CONDENSED CONSOLIDATED INCOME STATEMENT
Note
26 week period ended
26 week period ended
26 October 2025
27 October 2024
£m
£m
Revenue
2,3
845.1
784.8
Cost of sales
(743.4)
(687.5)
Exceptional cost of sales
4
-
(1.1)
Gross profit
101.7
96.2
Administrative expenses
(23.2)
(21.9)
Exceptional administrative income/(expenses)
4
0.9
(0.7)
Exceptional impairment of assets
4
-
(13.4)
Operating profit
79.4
60.2
Finance costs
5
(19.6)
(19.7)
Finance income
5
1.1
1.3
Exceptional finance costs
4,5
-
(1.3)
Net finance costs
(18.5)
(19.7)
Profit before taxation
60.9
40.5
Taxation
6
(16.5)
(11.6)
Profit for the financial period
44.4
28.9
Earnings per share
Basic
7
19.1p
12.2p
Diluted
7
19.1p
12.2p
The notes are an integral part of the Interim Condensed Consolidated Financial Statements.
WATCHES OF SWITZERLAND GROUP PLC
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Note
26 week period ended 26 October 2025
26 week period ended 27 October 2024
£m
£m
Profit for the financial period
44.4
28.9
Other comprehensive income:
Items that may be reclassified to profit or loss in subsequent periods
Foreign exchange gain/(loss) on translation of foreign operations
0.2
(7.9)
Related tax movements
-
0.6
0.2
(7.3)
Items that will not be reclassified to profit or loss in subsequent periods
Actuarial gain on defined benefit pension scheme
12
0.1
0.6
Related tax movements
-
(0.1)
0.1
0.5
Other comprehensive income/(expense) for the period net of tax
0.3
(6.8)
Total comprehensive profit for the period net of tax
44.7
22.1
The notes are an integral part of the Interim Condensed Consolidated Financial Statements.
WATCHES OF SWITZERLAND GROUP PLC
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEET
Note
26 October 2025
27 April 2025
27 October 2024
£m
£m
£m
Assets
Non-current assets
Goodwill
8
231.3
231.2
233.7
Intangible assets
8
72.5
72.9
74.5
Property, plant and equipment
9
212.0
192.4
203.5
Right-of-use assets
10
362.1
358.6
369.0
Investment in joint venture and associates
0.5
0.5
-
Deferred tax assets
3.8
4.1
4.4
Post-employment benefit asset
12
0.9
0.5
0.7
Trade and other receivables
4.5
4.5
2.1
887.6
864.7
887.9
Current assets
Inventories
502.8
447.4
481.2
Current tax asset
3.2
8.6
5.3
Trade and other receivables
47.1
56.0
58.3
Cash and cash equivalents
11
63.3
98.9
110.5
616.4
610.9
655.3
Total assets
1,504.0
1,475.6
1,543.2
Liabilities
Current liabilities
Trade and other payables
(252.1)
(254.9)
(276.4)
Current tax liability
(1.5)
(0.5)
(2.2)
Lease liabilities
10
(58.9)
(56.0)
(58.0)
Provisions
(1.8)
(2.4)
(2.2)
(314.3)
(313.8)
(338.8)
Non-current liabilities
Trade and other payables
(4.8)
(4.6)
(4.7)
Deferred tax liabilities
(19.5)
(15.9)
(18.4)
Lease liabilities
10
(395.7)
(398.6)
(396.3)
Borrowings
11
(173.8)
(192.8)
(228.5)
Provisions
(10.8)
(10.3)
(8.9)
(604.6)
(622.2)
(656.8)
Total liabilities
(918.9)
(936.0)
(995.6)
Net assets
585.1
539.6
547.6
Equity
Share capital
2.9
3.0
3.0
Share premium
147.1
147.1
147.1
Capital redemption reserve
0.1
-
-
Merger reserve
(2.2)
(2.2)
(2.2)
Other reserves
(12.2)
(13.3)
(21.2)
Retained earnings
458.9
414.7
423.8
Foreign exchange reserve
(9.5)
(9.7)
(2.9)
Total equity
585.1
539.6
547.6
The notes are an integral part of the Interim Condensed Consolidated Financial Statements.
The 26 week period ended 27 October 2024 balances have been restated, in line with IFRS 3 'Business combinations', to reflect the finalisation of the provisional fair values of Roberto Coin Inc. and Hodinkee, Inc. Further detail is disclosed within note 15.
WATCHES OF SWITZERLAND GROUP PLC
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share capital
Share premium
Capital redemption reserve
Merger reserve
Other reserves
Retained earnings
Foreign exchange reserve
Total equity attributable to owners
£m
£m
£m
£m
£m
£m
£m
£m
Balance at 29 April 2024
3.0
147.1
-
(2.2)
(23.4)
394.1
4.4
523.0
Profit for the financial period
-
-
-
-
-
28.9
-
28.9
Other comprehensive income
-
-
-
-
-
0.6
(7.9)
(7.3)
Tax relating to components of other comprehensive income
-
-
-
-
-
(0.1)
0.6
0.5
Total comprehensive income
-
-
-
-
-
29.4
(7.3)
22.1
Transactions with owners
Share-based payment charge
-
-
-
-
-
1.7
-
1.7
Share-based payments exercised
-
-
-
-
2.2
(2.2)
-
-
Tax on share-based payments
-
-
-
-
-
0.8
-
0.8
Balance at 27 October 2024
3.0
147.1
-
(2.2)
(21.2)
423.8
(2.9)
547.6
Balance at 28 April 2025
3.0
147.1
-
(2.2)
(13.3)
414.7
(9.7)
539.6
Profit for the financial period
-
-
-
-
-
44.4
-
44.4
Other comprehensive income
-
-
-
-
-
0.1
0.2
0.3
Total comprehensive income
-
-
-
-
-
44.5
0.2
44.7
Transactions with owners
Purchase of own shares for cancellation
-
-
-
-
(12.9)
-
-
(12.9)
Own shares cancelled
(0.1)
-
0.1
-
13.8
(0.9)
-
12.9
Share-based payment charge
-
-
-
-
-
0.7
-
0.7
Share-based payments exercised
-
-
-
-
0.2
(0.2)
-
-
Tax on items credited to equity
-
-
-
-
-
0.1
-
0.1
Balance at 26 October 2025
2.9
147.1
0.1
(2.2)
(12.2)
458.9
(9.5)
585.1
The notes are an integral part of the Interim Condensed Consolidated Financial Statements.
Other reserves represent own shares purchased by the Group. During the prior period to 27 April 2025 the Group announced a £25.0 million share buyback programme. As at 27 April 2025, £12.1 million of shares had been purchased for cancellation, of which £11.3 million had been paid, cancelled and transferred to retained earnings, and £0.8 million were unpaid shares. The outstanding £12.9 million of committed share buyback was also accrued at that date and shown within retained earnings.
During the current period the £12.9 million of committed shares were purchased, paid, and cancelled. The shares purchased in the prior period but paid for in the current period, were transferred to retained earnings.
The nominal value of shares cancelled as part of the above exercise, totalling £78,358 at the period end, are shown within the capital redemption reserve.
WATCHES OF SWITZERLAND GROUP PLC UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Note
26 week period ended 26 October 2025
26 week period ended 27 October 2024
£m
£m
Cash flows from operating activities
Profit for the financial period
44.4
28.9
Adjustments for:
Depreciation of property, plant and equipment
9
20.2
19.5
Depreciation of right-of-use assets
10
26.3
27.7
Amortisation of intangible assets
8
1.7
1.5
Exceptional impairment of right-of-use assets
4
-
7.2
Exceptional impairment of property, plant and equipment
4
-
6.2
Share-based payment charge
0.7
1.7
Finance income
5
(1.1)
(1.3)
Finance costs
5
19.6
19.7
Gain on lease disposals
(0.3)
(0.8)
Exceptional lease related gains
4
(1.8)
-
Gain on lease modifications
-
(0.2)
Loss on disposal of property, plant and equipment
9
0.3
0.1
Taxation
16.5
11.6
Increase in inventories
(54.9)
(41.2)
Decrease/(increase) in debtors
2.6
(16.0)
Increase in creditors, provisions, and pensions
24.9
18.7
Cash generated from operations
99.1
83.3
Pension scheme contributions
12
(0.3)
(0.3)
Tax paid
(6.3)
(11.6)
Total net cash generated from operating activities
92.5
71.4
Cash flows from investing activities
Purchase of property, plant and equipment
9
(40.4)
(42.1)
Purchase of intangible assets
8
(1.3)
(1.7)
Movement on capital expenditure accrual
3.4
(1.4)
Cash outflow from purchase of non-current assets
(38.3)
(45.2)
Disposal of European property, plant and equipment
9
0.4
2.7
Acquisition of subsidiaries net of cash acquired
15
(9.5)
(106.9)
Interest received
0.9
0.8
Total net cash outflow from investing activities
(46.5)
(148.6)
Cash flows from financing activities
Purchase of own shares for cancellation
(13.8)
-
Net movement on multicurrency revolving loan facility
11
(19.9)
26.4
Proceeds of term loan
11
-
91.6
Costs directly attributable to raising new loan facility
11
-
(0.3)
Payment of capital element of leases
10
(28.5)
(26.2)
Payment of interest element of leases
10
(12.8)
(12.4)
Interest paid
(6.8)
(6.4)
Net cash (outflow)/inflow from financing activities
(81.8)
72.7
Net decrease in cash and cash equivalents
(35.8)
(4.5)
Cash and cash equivalents at the beginning of the period
98.9
115.7
Exchange gains/(losses) on cash and cash equivalents
0.2
(0.7)
Cash and cash equivalents at the end of period
11
63.3
110.5
Comprised of:
Cash at bank and in hand
44.1
90.2
Cash in transit
19.2
20.3
Cash and cash equivalents at end of period
11
63.3
110.5
WATCHES OF SWITZERLAND GROUP PLC
NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. General information and basis of preparation
Basis of preparation
The Group's Interim Condensed Consolidated Financial Statements for the 26 weeks to 26 October 2025 (prior period: 26 weeks to 27 October 2024) were approved by the Board of Directors on 3 December 2025 and have been prepared in accordance with UK adopted International Accounting Standard 34.
The results for the 26 weeks to 26 October 2025 have been reviewed by Ernst & Young LLP and a copy of their review report is given at the end of this interim report. The condensed set of interim financial statements has not been audited by the auditor and does not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006.
The financial information contained in this report is condensed and does not include all of the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group's Annual Report and Accounts for the 52 weeks to 27 April 2025 which have been delivered to the Registrar of Companies. The audit report for those accounts was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under 498(2) or (3) of the Companies Act 2006.
The financial statements have been prepared on the historical cost basis except for certain financial instruments, pension assets and liabilities, and share-based payment liabilities which are measured at fair value. Where applicable, disclosures required by paragraph 16A of IAS 34 'Interim financial reporting' are given either in these interim financial statements or in the accompanying Interim Report.
The Interim Condensed Consolidated Financial Statements are presented in Pounds Sterling (£), which is the Group's presentational currency, and are shown in £millions to one decimal place.
Going concern
The Directors consider that the Group has, at the time of approving the Group's Interim Condensed Consolidated Financial Statements, adequate resources to remain in operation for the period to 31 December 2026, and have therefore continued to adopt the going concern basis in preparing the consolidated information.
At the balance sheet date, the Group had a total of £368.9 million in available committed facilities, of which £175.7 million was drawn down. Net debt at this date was £112.4 million. Liquidity headroom (defined as unrestricted cash plus undrawn available facilities) was £237.5 million. All bank facilities run coterminously and are due to expire in May 2028.
The key covenant tests attached to all Group facilities are a measure of net debt to EBITDA, and the Fixed Charge Cover Ratio (FCCR) at each April and October. The facility covenants are on a pre-IFRS 16 basis and exclude share-based payment costs. Net debt to EBITDA is defined as the ratio of total net debt at the reporting date to the last 12 month Adjusted EBITDA. This ratio must not exceed 3. The FCCR is the ratio of Adjusted EBITDA plus rent to the total finance charge and rent for the 12 months to the reporting date. This ratio must exceed 1.6. At 26 October 2025 the Group comfortably satisfied the covenant tests with net debt to EBITDA being less than 3 and the FCCR exceeding 1.6.
In assessing whether the going concern basis of accounting is appropriate, the Directors have reviewed various trading scenarios for the period to 31 December 2026 from the date of this report. These included:
- The FY26 base case forecast which aligns to the latest Guidance given in this announcement, plus a further eight-month period which assumes no additional sales or profit uplift. These included the following key assumptions:
- Revenue forecast supported by expected luxury watch supply
- Impact of US tariffs included where price changes have already been announced
- Increased cost base in line with macroeconomic environment, employment taxes and environmental targets
- Under the base case forecast, the Group has significant liquidity and complies with all covenant tests to 31 December 2026. The forecast reflects current visibility of supply from key brands and confirmed showroom refurbishments, openings and closures, and excludes uncommitted capital projects and acquisitions which would only occur if expected to be incremental to the business.
- Severe but plausible scenarios of:
- 15% reduction in sales against the base case forecast as a result of consumer confidence, macroeconomic and governmental factors. This scenario did not include cost mitigations which are given below
- The realisation of material risks detailed within the Principal Risks and Uncertainties on pages 148 to 153 (including potential data breaches and non-compliance with laws and regulations), and environmental risks highlighted on pages 123 to 126 of the Group's Annual Report and Accounts for the 52 weeks to 27 April 2025
Under these scenarios the net debt to EBITDA and the FCCR covenants would be complied with.
- Reverse stress-testing of cash flows during the going concern period was performed. This determined what level of reduced EBITDA and worst-case cash flows would result in a breach of the liquidity or covenant tests. The likelihood of this level of reduced EBITDA is considered remote taking into account liquidity and covenant headroom, as well as mitigating actions within management's control (as noted below) and that this would represent a significant reduction in sales and margin from prior financial years.
- Should trading be worse than the outlined severe but plausible scenarios, the Group has the following mitigating actions within management's control:
- Reduction of marketing spend
- Reduction in the level of inventory holding and purchases
- Restructuring of the business with headcount and showroom operations savings
- Redundancies and pay freezes
- Reducing the level of planned capex
The Directors also considered whether there were any events or conditions occurring just outside the going concern period that should be considered in their assessment, including whether the going concern period needed to be extended. None were noted.
As a result of the above analysis, including potential severe but plausible scenarios and the reverse stress test, the Board believes that the Group is able to adequately manage its financing and principal risks, and that the Group will be able to operate within the level of its facilities and meet the required covenants for the period to 31 December 2026. For this reason, the Board considers it appropriate for the Group to adopt the going concern basis in preparing the Interim Condensed Consolidated Financial Statements.
Climate change
In preparing the Interim Condensed Consolidated Financial Statements, management has considered the impact of climate change, particularly in the context of the disclosures included in the 2025 Annual Report within the Strategic Report. These considerations did not have a material impact on the financial reporting judgements and estimates, consistent with the assessment that climate change is not expected to have a significant impact on the Group's going concern assessment to 31 December 2026.
Accounting policies
The accounting policies adopted in the preparation of the condensed set of interim financial statements are the same as those set out in the Group's Annual Report and Accounts for the 52 weeks ended 27 April 2025.
Further amendments to and the interpretation of, existing accounting standards that became effective during the period, did not have a material impact on the Interim Condensed Consolidated Financial Statements.
Exceptional items
The Group presents as exceptional items on the face of the Condensed Consolidated Income Statement, those material items of income and expense which, because of the nature or the expected infrequency of the events giving rise to them, merit separate presentation to provide a better understanding of the elements of financial performance in the financial period, so as to assess trends in financial performance. Further details on exceptional items are given within note 4.
Alternative performance measures (APMs)
The Group has identified certain measures that it believes will assist the understanding of the performance of the business. These APMs are not defined or specified under the requirements of IFRS.
The Group believes that these APMs, which are not considered to be a substitute for, or superior to, IFRS measures, provide stakeholders with additional useful information on the underlying trends, performance and position of the Group and are consistent with how business performance is measured internally. The APMs are not defined by IFRS and therefore may not be directly comparable with other companies' APMs.
The key APMs that the Group uses include: Net margin, Adjusted EBITDA, Adjusted EBIT and Adjusted Earnings Per Share. These APMs are set out in the Glossary including explanations of how they are calculated and how they are reconciled to a statutory measure where relevant.
The Group makes certain adjustments to the statutory profit measures in order to derive many of these APMs. The Group's policy is to exclude items that are considered non-underlying and exceptional due to their size, nature or incidence, and are not considered to be part of the normal operating costs of the Group. Treatment as an adjusting item provides stakeholders with additional useful information to assess the year-on-year trading performance of the Group but should not be considered in isolation of statutory measures.
Major sources of estimation uncertainty and judgement
The preparation of consolidated financial information requires the Group to make estimates and assumptions that affect the application of policies and reported amounts. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are reasonable under the circumstances. Actual results may differ from these estimates. The critical accounting judgements and major sources of estimation uncertainty remain consistent with those presented in the Group's Annual Report and Accounts for the 52 weeks ended 27 April 2025 unless otherwise stated.
2. Segment reporting
The key Group performance measures are Adjusted Earnings Before Interest, Tax, Depreciation and Amortisation (Adjusted EBITDA) and Adjusted Earnings Before Interest and Tax (Adjusted EBIT), both shown pre-exceptional items, as detailed below. The segment reporting is disclosed on a pre-IFRS 16 basis reflecting how results are reported to the Chief Operating Decision Makers (CODMs) and how they are measured for the purposes of covenant testing. Both Adjusted EBITDA and Adjusted EBIT are APMs and these measures provide stakeholders with additional useful information to assess the year-on-year trading performance of the Group but should not be considered in isolation of statutory measures.
Adjusted EBITDA represents profit for the period before finance costs, finance income, taxation, depreciation, amortisation, and exceptional items presented in the Group's Interim Condensed Consolidated Income Statement (consisting of exceptional administrative expenses, exceptional finance costs and exceptional impairment) on a pre-IFRS 16 basis.
As a result of the acquisition of Roberto Coin Inc. in May 2024 and the continued growth of the wholesale business in the period, the Group's organisational structure and internal reporting to the CODM have changed. US retail and US wholesale, previously aggregated into the US reporting segment, have been shown separately. All US direct-to-consumer sales, including ecommerce, are now reported through US retail. The comparative segmental disclosures have been re-presented to allow for comparison.
26 week period ended 26 October 2025
UK and
US
US
Corporate
Eliminations
Total
Europe
retail
wholesale
£m
£m
£m
£m
£m
£m
Revenue
External customers
436.4
354.8
53.9
-
-
845.1
Inter-segment
-
-
2.4
-
(2.4)
-
Total revenue
436.4
354.8
56.3
-
(2.4)
845.1
Cost of sales
(285.5)
(230.6)
(32.7)
-
2.4
(546.4)
Net margin
150.9
124.2
23.6
-
-
298.7
Less:
Showroom costs
(83.7)
(63.2)
-
-
-
(146.9)
Overheads
(22.8)
(20.9)
(11.6)
(2.1)
-
(57.4)
Showroom opening and closing costs
(1.6)
(2.0)
-
-
-
(3.6)
Adjusted EBITDA
42.8
38.1
12.0
(2.1)
-
90.8
Depreciation, amortisation and loss on disposal of assets
(12.0)
(9.1)
(0.4)
(0.8)
-
(22.3)
Segment profit/(loss)*
30.8
29.0
11.6
(2.9)
-
68.5
IFRS 16 adjustments (excluding interest on leases)
10.0
Net finance costs (note 5)
(18.5)
Exceptional administrative income (note 4)
0.9
Profit before taxation for the financial period
60.9
* Segment profit/(loss) is defined as being Earnings Before Interest, Tax, exceptional items and IFRS 16 adjustments (Adjusted EBIT).
26 week period ended 27 October 2024
UK and
US
US
Corporate
Eliminations1
Total
Europe
retail1
wholesale1
£m
£m
£m
£m
£m
£m
Revenue
External customers
429.9
305.6
49.3
-
-
784.8
Inter-segment
-
-
1.1
-
(1.1)
-
Total revenue
429.9
305.6
50.4
-
(1.1)
784.8
Cost of sales
(276.3)
(195.5)
(29.8)
-
1.1
(500.5)
Net margin
153.6
110.1
20.6
-
-
284.3
Less:
Showroom costs
(82.8)
(58.8)
-
-
-
(141.6)
Overheads
(21.0)
(17.2)
(9.7)
(2.7)
-
(50.6)
Showroom opening and closing costs
(1.7)
(3.1)
-
-
-
(4.8)
Adjusted EBITDA
48.1
31.0
10.9
(2.7)
-
87.3
Depreciation, amortisation and loss on disposal of assets
(13.4)
(7.0)
-
(0.7)
-
(21.1)
Segment profit/(loss)*
34.7
24.0
10.9
(3.4)
-
66.2
IFRS 16 adjustments (excluding interest on leases)
9.2
Net finance costs (note 5)
(18.4)
Exceptional cost of sales (note 4)
(1.1)
Exceptional impairment of assets (note 4)
(13.4)
Exceptional administrative costs (note 4)
(0.7)
Exceptional finance costs (note 4)
(1.3)
Profit before taxation for the financial period
40.5
1 US retail and US wholesale, previously aggregated into the US reporting segment, have been shown separately to align with the latest internal reporting to the CODM. Disclosures have been re-presented to show all US direct-to-consumer sales, including ecommerce, within the US retail segment.
Revenue from external customers
26 week period ended 26 October 2025
26 week period ended 27 October 2024
£m
£m
UK and Europe
Luxury watches2
379.4
372.6
Luxury jewellery retail
29.5
29.4
Services/other2
27.5
27.9
Total
436.4
429.9
US retail
Luxury watches2
328.7
281.9
Luxury jewellery retail1
18.4
16.7
Services/other2
7.7
7.0
Total
354.8
305.6
US wholesale
Luxury jewellery wholesale1
53.9
49.3
Total
53.9
49.3
Group
Luxury watches2
708.1
654.5
Luxury jewellery retail1
47.9
46.1
Luxury jewellery wholesale1
53.9
49.3
Services/other2
35.2
34.9
Total
845.1
784.8
1 US retail and US wholesale have been re-presented as detailed at the start of this note.
2 In the period, the Group has reclassified the sales of certain watch brands from services/other into luxury watches to reflect how results are reported the CODMs. The 26 week period ended 27 October 2024 has been re-presented to allow for comparison.
'Services/other' consists of the sale of fashion and classic watches and jewellery, the sale of gifts, servicing, repairs and insurance.
Information regarding geographical areas, including revenue from external customers is disclosed above.
No single customer accounted for more than 10% of revenue in any of the financial periods noted above.
3. Revenue
The Group's disaggregated revenue recognised under contracts with customers relates to the following categories and operating segments.
26 week period ended 26 October 2025
Sale of goods - retail and online
Sale of goods - wholesale
Eliminations
Rendering of services
Total
£m
£m
£m
£m
£m
UK and Europe
423.5
-
-
12.9
436.4
US
348.2
56.3
(2.4)
6.6
408.7
771.7
56.3
(2.4)
19.5
845.1
26 week period ended 27 October 2024
Sale of goods - retail and online1
Sale of goods - wholesale1
Eliminations1
Rendering of services
Total
£m
£m
£m
£m
£m
UK and Europe
416.6
-
-
13.3
429.9
US
299.4
50.4
(1.1)
6.2
354.9
Total
716.0
50.4
(1.1)
19.5
784.8
1 US retail and US wholesale have been re-presented as detailed in note 2.
4. Exceptional items
Exceptional items are those that in the judgement of the Directors need to be disclosed by virtue of their size, nature or incidence, in order to draw the attention of the reader and to show the underlying business performance of the Group. Such items are included within the Income Statement caption to which they relate and are separately disclosed on the face of the Interim Condensed Consolidated Income Statement.
26 week period ended 26 October 2025
26 week period ended 27 October 2024
£m
£m
Exceptional cost of sales
Rolex Old Bond Street (IFRS 16 depreciation)
-
(1.1)
Total exceptional cost of sales
-
(1.1)
Exceptional administrative costs
Lease related gains(i)
1.8
-
Showroom closure costs(ii)
(0.7)
-
Business acquisitions(iii)
Integration costs of business acquisitions
(0.2)
-
Professional and legal expenses on actual and prospective business acquisitions
-
(0.7)
Showroom impairment
Impairment of property, plant and equipment
-
(6.2)
Impairment of right-of-use assets
-
(7.2)
Total exceptional administrative costs
0.9
(14.1)
Exceptional finance costs
Rolex Old Bond Street (IFRS 16 interest)
-
(1.3)
Total exceptional finance costs
-
(1.3)
Total exceptional items
0.9
(16.5)
(i) Lease related gains
Early lease exit settlements were negotiated for a number of closed showrooms in the period. This resulted in a £1.3 million lease surrender gain. The Group further sublet one lease which resulted in a £0.5 million gain. These have been recognised as exceptional items as they do not form part of the underlying trading of the Group, and partly offset impairment charges taken to exceptional items in the prior period.
(ii) Showroom closure costs
Showroom closure costs include £0.4 million of redundancy costs, and £0.3 million for business rates in relation to closed showrooms.
(iii) Business acquisitions - Integration costs of business acquisitions
Professional, legal expenses and integration expenses in relation to business combinations have been expensed as an exceptional cost as they are regarded as non-trading, non-underlying costs. The amount incurred in the current period relates to acquisitions made in the previous year.
All of these items are considered exceptional as they are linked to unique non-recurring events and do not form part of the underlying trading of the Group.
The tax charge on the exceptional items noted above totalled £0.1 million (26 week period to 27 October 2024: £3.9 million income).
5. Net finance costs
26 week period ended 26 October 2025
26 week period ended 27 October 2024
£m
£m
Finance costs
Interest payable on long-term borrowings
(6.4)
(7.6)
Amortisation of capitalised transaction costs
(0.4)
(0.5)
Net foreign exchange expense on financing activities
-
(0.5)
Interest on lease liabilities (note 10)
(12.8)
(11.1)
(19.6)
(19.7)
Finance income
Bank interest receivable
0.9
1.2
Net foreign exchange gain on financing activities
0.2
-
Other interest receivable
-
0.1
1.1
1.3
Total net finance costs excluding exceptional items
(18.5)
(18.4)
Exceptional finance costs (note 4)
-
(1.3)
Total net finance costs
(18.5)
(19.7)
Further detail of borrowing facilities in place is given in note 11 to these Interim Condensed Consolidated Financial Statements.
6. Taxation
The income tax expense recognised in the results is based on management's best estimate of the full-year effective tax rate using estimated full-year profits excluding any discrete items. The effective tax rate at the half year is 27.2% (26 week period to 27 October 2024: 28.5%). This is higher than the applicable UK corporation tax rate for the year of 25.0% as a result of higher chargeable taxes on US profits and the impact of expenses disallowed for corporation tax.
OECD Pillar Two model rules
Pillar Two legislation has been enacted or substantively enacted in certain jurisdictions in which the Group operates. The Group has performed an assessment of the Group's potential exposure to Pillar Two income taxes based on the most recent information available regarding the financial performance of the constituent entities in the Group. Based on the assessment performed, the Pillar Two effective tax rates in all jurisdictions in which the Group operates are above 15%, or the results fall under a Pillar Two Safe Harbour. Management is not currently aware of any circumstances under which this might change for future periods and therefore the Group does not expect a potential exposure to Pillar Two top up taxes.
7. Earnings per share (EPS)
26 week period ended 26 October 2025
26 week period ended 27 October 2024
Basic
EPS
19.1p
12.2p
EPS adjusted for exceptional items
18.8p
17.6p
EPS adjusted for exceptional items and pre-IFRS 16
19.6p
18.1p
Diluted
EPS
19.1p
12.2p
EPS adjusted for exceptional items
18.8p
17.5p
EPS adjusted for exceptional items and pre-IFRS 16
19.5p
18.0p
Basic EPS is based on the profit for the period attributable to the equity holders of the Parent Company divided by the weighted average number of shares.
Diluted EPS is calculated by adjusting the weighted average number of shares used for the calculation of basic EPS as increased by the dilutive effect of potential ordinary shares.
The following table reflects the profit and share data used in the basic and diluted EPS calculations:
26 week period ended 26 October 2025
26 week period ended 27 October 2024
£m
£m
Profit after tax attributable to equity holders of the Parent Company
44.4
28.9
Add back:
Exceptional (income)/expenses, net of tax
(0.8)
12.6
Profit adjusted for exceptional items
43.6
41.5
Pre-exceptional IFRS 16 adjustments, net of tax
1.8
1.4
Profit adjusted for exceptional items and IFRS 16
45.4
42.9
The following table reflects the share data used in the basic and diluted EPS calculations:
26 week period ended 26 October 2025
26 week period ended 27 October 2024
Weighted average number of shares:
'000
'000
Weighted average number of ordinary shares in issue
232,140
236,588
Weighted average shares for basic EPS
232,140
236,588
Weighted average dilutive potential shares
188
1,320
Weighted average shares for diluted EPS
232,328
237,908
8. Goodwill and Intangible assets
Goodwill
Brands
Agency agreement
Licences with indefinite useful life
Computer software
Total
£m
£m
£m
£m
£m
£m
Net book value
At 28 April 2025
231.2
12.0
0.6
53.7
6.6
304.1
Additions
-
-
-
-
1.3
1.3
Amortisation
-
(0.5)
(0.1)
-
(1.1)
(1.7)
Foreign exchange movement
0.1
-
-
-
-
0.1
At 26 October 2025
231.3
11.5
0.5
53.7
6.8
303.8
9. Property, plant and equipment
Land and buildings
Fittings and equipment
Total
£m
£m
£m
Net book value
At 28 April 2025
0.5
191.9
192.4
Additions
-
40.4
40.4
Disposals
-
(0.7)
(0.7)
Depreciation
-
(20.2)
(20.2)
Foreign exchange movement
-
0.1
0.1
At 26 October 2025
0.5
211.5
212.0
10. Leases
Right-of-use assets
Properties
Other
Total
£m
£m
£m
Net book value
At 28 April 2025
357.8
0.8
358.6
Additions
25.7
-
25.7
Depreciation
(26.1)
(0.2)
(26.3)
Lease surrenders and breaks
(4.4)
-
(4.4)
Leases renewed during the period
8.7
-
8.7
Lease modifications/other
(0.3)
-
(0.3)
Foreign exchange movement
0.1
-
0.1
At 26 October 2025
361.5
0.6
362.1
Lease liabilities
Properties
Other
Total
£m
£m
£m
At 28 April 2025
(454.1)
(0.5)
(454.6)
Additions
(25.0)
-
(25.0)
Payments
41.1
0.2
41.3
Interest (note 5)
(12.8)
-
(12.8)
Lease surrenders and breaks
5.9
-
5.9
Leases renewed during the period
(8.7)
-
(8.7)
Lease modifications
(0.6)
-
(0.6)
Foreign exchange movement
(0.1)
-
(0.1)
At 26 October 2025
(454.3)
(0.3)
(454.6)
Impairment considerations
Property, plant and equipment and other non-current assets are reviewed for impairment if events or changes in circumstances indicate that the carrying amount of an asset or a cash-generating unit (CGU) is not recoverable. A CGU is the smallest identifiable group of assets that generate independent cash flows which are monitored by management and the CODMs. The Group considers this to be showroom locations or offices.
The Group reviewed the profitability of its showroom network, taking into account the potential future impact on customer demand and increased costs. At 26 October 2025, all showroom asset values are supported by their value-in-use recoverable amount.
The cash flows used within the impairment model are based on assumptions which are sources of estimation uncertainty and movements in these assumptions could lead to further impairments. Management has performed sensitivity analysis on the key assumptions in the impairment model using reasonably possible changes in these key assumptions across the showroom portfolio.
Sales growth rates are in line with the growth rate in the Guidance given in this announcement. Reducing the FY26 revenue guidance by 5.0% and modelling this lower performance through the outer periods, would result in an increased impairment charge of £2.5 million. A 2.0% increase in the discount rate would increase the impairment charge by £0.3 million. In combination, a 5.0% revenue reduction and a 2.0% increase in discount rate would increase the impairment charge by £3.5 million. This analysis does not assume any improvement in macroeconomic conditions or interest rates. Reasonably possible changes of the other assumptions would have no further significant impact on the impairment charge.
11. Borrowings
26 October 2025
27 April 2025
27 October 2024
£m
£m
£m
Non-current
Multicurrency revolving loan facility
(81.8)
(101.2)
(141.3)
Term loan
(93.9)
(93.9)
(88.7)
Associated capitalised transaction costs
1.9
2.3
1.5
Total borrowings
(173.8)
(192.8)
(228.5)
The Group facilities include financial covenants which were comfortably met in the period ending 26 October 2025. Further detail of the covenants in place is given within the going concern section of note 1 to these Interim Condensed Consolidated Financial Statements.
Analysis of net debt
27 April 2025
Cash flow
Non-cash charges^
Foreign exchange
26 October 2025
£m
£m
£m
£m
£m
Cash and cash equivalents
98.9
(35.8)
-
0.2
63.3
Term loan
(93.9)
-
-
-
(93.9)
Multicurrency revolving loan facility
(101.2)
19.9
-
(0.5)
(81.8)
Net debt excluding capitalised transaction costs (Pre-IFRS 16)
(96.2)
(15.9)
-
(0.3)
(112.4)
Capitalised transaction costs
2.3
-
(0.4)
-
1.9
Net debt (Pre-IFRS 16)
(93.9)
(15.9)
(0.4)
(0.3)
(110.5)
Lease liabilities
(454.6)
41.3
(41.2)
(0.1)
(454.6)
Total net debt
(548.5)
25.4
(41.6)
(0.4)
(565.1)
^ Non-cash charges are principally lease liability interest charges, additions and revisions.
Included in cash and cash equivalents is restricted cash of £19.0 million (27 April 2025: £19.2 million). Restricted cash is defined as cash controlled by the Group but which is not freely useable by the Group in day-to-day operations.
12. Post-employment benefit obligations
During the 26 weeks to 26 October 2025 (prior period: 26 weeks to 27 October 2024), the Group operated three (prior period: four) defined contribution pension schemes and continues to operate one defined benefit scheme.
The movement in the defined benefit asset in the period is as follows:
26 weeks to 26 October 2025
52 weeks to 27 April 2025
26 weeks to 27 October 2024
£m
£m
£m
Net pension asset/(liability) at the beginning of the period
0.5
(0.2)
(0.2)
Administration costs
-
(0.2)
-
Employer contributions
0.3
0.7
0.3
Actuarial gain
0.1
0.2
0.6
Net pension asset at the end of the period
0.9
0.5
0.7
The scheme liabilities are calculated using a discount rate set with reference to corporate bond yields. If scheme assets underperform this yield, this would create a deficit.
The IAS 19 (accounting) valuation of the defined benefit obligation was undertaken by an external qualified actuary at 26 October 2025 using the projected unit credit method.
The scheme valuation moved from a surplus of £0.5 million at 27 April 2025 to a surplus of £0.9 million at 26 October 2025. The principal actuarial assumptions used in the valuation were as follows:
26 October 2025
27 April 2025
27 October 2024
Discount rate
5.55%
5.55%
5.15%
Rate of future inflation - RPI
2.90%
3.15%
3.35%
Rate of future inflation - CPI
2.30%
2.55%
2.75%
Rate of increase in pensions in payment
2.80%
2.95%
3.10%
Proportion of employees opting for a cash commutation
100.0%
100.0%
100.0%
Virgin Media Limited v NTL Pension Trustees II Limited legal case
On 16 June 2023, the High Court issued a ruling in respect of Virgin Media v NTL Pension Trustees II Limited (and others) calling into question the validity of rule amendments made between 6 April 1997 and 5 April 2016 to defined benefit pension schemes contracted-out on a salary-related basis. Relevant amendments to benefits within these pension schemes over this time required written confirmation from the Scheme Actuary that the 'Reference Scheme Test' would continue to be met. In the absence of such a confirmation, the Rule amendment would be void.
This decision was confirmed by the Court of Appeal in 2024, however the Government announced on 5 June 2025 that legislation would be introduced to give affected pension schemes the ability to retrospectively obtain written actuarial confirmation that historic benefit changes met the necessary standards. This effectively means that provided schemes did in fact continue to meet the 'Reference Scheme Test' following any rule amendments, obtaining a retrospective actuarial confirmation where necessary will resolve this issue entirely.
The Aurum Retirement Benefits Scheme includes benefits arising from having been contracted-out on a salary-related basis and we have identified five relevant amendments over the time period in question. The Company has not yet reviewed these with its legal adviser, however in the majority of the important cases it is clear that the relevant documentation is in order as the S37 certification is present. Furthermore, given that retrospective actuarial confirmation would now be permitted if necessary, there is no cause to believe that the legal ruling will have any impact on the Scheme, and by extension on the pensions disclosures required for accounting purposes.
13. Related party transactions
Transactions with related undertakings
Transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation.
A loan of £2.4 million (27 October 2024: £nil, 27 April 2025: £2.4 million) is receivable form Audemars Piguet (Manchester) Limited in which the Group holds a 40% interest.
14. Financial instruments
Categories
* Excludes prepayments of £8.3 million (27 October 2024: £6.7 million, 27 April 2025: £9.1 million) and other debtors of £1.1 million (27 October 2024: £nil, 27 April 2025: £nil) that do not meet the definition of a financial instrument.
** Net of capitalised transaction costs.
*** Excludes other taxation and social security payables of £15.6 million (27 October 2024: £15.2 million, 27 April 2025: £19.5 million), customer deposits of £6.5 million (27 October 2024: £11.5 million, 27 April 2025: £4.3 million) and deferred income of £19.0 million (27 October 2024: £20.6 million, 27 April 2025: £19.6 million) that do not meet the definition of a financial instrument.
The 27 October 2024 balances have been restated, in line with IFRS 3 'Business combinations', to reflect the finalisation of the provisional fair values of Roberto Coin Inc. and Hodinkee, Inc. Further detail is disclosed within note 15.
Fair values
The fair values of each category of the Group's financial instruments are materially the same as their carrying values in the Group's Interim Condensed Consolidated Balance Sheet. The fair value of trade and other receivables, trade and other payables, cash and cash equivalents and loan facilities all approximate their carrying amount because of the limited movement in the short maturity of these instruments and limited change in prevailing interest rates since recognition.
15. Business combinations
No business acquisitions took place in the period.
Roberto Coin Inc.
As reported in the Group's Annual Report and Accounts for the 52 weeks to 27 April 2025, the fair value assessment of Roberto Coin Inc. was finalised in the period to 27 April 2025. Given this timing, the 27 October 2024 comparative period balances have been restated in line with IFRS 3 'Business Combinations'. The following table summarises the consideration paid for the acquisition net of £4.0 million of cash acquired, and the fair value of assets acquired at the acquisition date:
£m
Total cash consideration net of cash acquired
106.2
Assessment of values on acquisition
£m
Inventories
53.9
Trade and other receivables
13.2
Intangibles - licenses with indefinite useful life
57.2
Intangibles - brand
0.5
Property, plant and equipment
1.0
Trade and other payables
(32.3)
Provisions
(0.4)
Right-of-use asset
1.9
Lease liabilities
(1.9)
Deferred tax liability
(15.5)
Total identifiable net assets
77.6
Goodwill
28.6
Total assets acquired
106.2
Finalisation of the fair value assessment resulted in an increase of inventory, trade and other receivables, trade and other payables, deferred tax liability, and the total cash consideration net of cash acquired, with the corresponding entry to the goodwill balance of £6.5 million.
Contingent consideration of £7.4 million was paid in the period, in addition to the £2.1 million net working capital true up payment.
Hodinkee, Inc.
As reported in the Group's Annual Report and Accounts for the 52 weeks to 27 April 2025, the fair value assessment of the acquired trade and assets of Hodinkee, Inc. and Hodinkee Insurance Holdings Inc. were updated in the period to 27 April 2025. Given this timing, the 27 October 2024 comparative period balances have been restated in line with IFRS 3 'Business Combinations'. The following table summarises the consideration paid, and the fair value of assets acquired at the acquisition date:
£m
Total cash consideration net of cash acquired
10.7
Assessment of values on acquisition
£m
Inventories
0.2
Trade and other receivables
0.1
Intangibles - brand
2.9
Trade and other payables
(1.4)
Total identifiable net assets
1.8
Goodwill
8.9
Total assets acquired
10.7
Finalisation of the fair value assessment resulted in an increase of intangible assets for the recognition of the Hodinkee Inc. brand, and an increase of trade and other payables, with the corresponding entry to the goodwill balance. Adjustments are not material at an individual line level and in aggregate. The assessment of values on acquisition is now final.
16. Contingent liabilities
From time to time, the Group may be subject to complaints and litigation from its clients, employees, suppliers and other third parties. Such complaints and litigation may result in damages or other losses, which may not be covered by the Group's insurance policies or which may exceed any existing coverage. These are not expected to result in a material liability to the Group.
17. Post-balance sheet events
No post balance sheet events have been identified.
WATCHES OF SWITZERLAND GROUP PLC
STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors confirm that, to the best of their knowledge, this condensed consolidated interim financial information has been prepared in accordance with UK adopted International Accounting Standard 34 and that the interim report includes a fair review of the information required by DTR 4.2.4R, DTR 4.2.7R and DTR 4.2.8R, namely:
· an indication of important events that have occurred during the first 26 weeks to 26 October 2025 and their impact on the condensed set of financial statements, and a description of the principal risks and uncertainties for the remaining 26 weeks of the financial year; and
· material related party transactions in the first 26 weeks to 26 October 2025 and any material changes in the related party transactions described in the last annual report.
There have been no changes to the directors of Watches of Switzerland Group PLC to those listed in the Group's Annual Report and Accounts for the 52 weeks to 27 April 2025.
A list of current directors is maintained on the Group's website: www.thewosgroupplc.com.
For and by order of the Board
Brian Duffy Anders Romberg
Chief Executive Officer Chief Financial Officer
3 December 2025
INDEPENDENT REVIEW REPORT TO WATCHES OF SWITZERLAND GROUP PLC
Conclusion
We have been engaged by the Company to review the condensed set of financial statements in the half-yearly financial report for the 26 weeks ended 26 October 2025 which comprises the Unaudited Interim Condensed Consolidated Income Statement, Unaudited Interim Condensed Consolidated Statement of Comprehensive Income, Unaudited Interim Condensed Consolidated Balance Sheet, Unaudited Interim Condensed Consolidated Statement of Changes in Equity, Unaudited Interim Condensed Consolidated Statement of Cash Flows and notes 1 to 17. We have read the other information contained in the half yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the 26 weeks ended 26 October 2025 is not prepared, in all material respects, in accordance with UK adopted International Accounting Standard 34 and the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority.
Basis for Conclusion
We conducted our review in accordance with International Standard on Review Engagements 2410 (UK) "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" (ISRE) issued by the Financial Reporting Council. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
As disclosed in note 1, the annual financial statements of the group are prepared in accordance with UK adopted international accounting standards. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with UK adopted International Accounting Standard 34, "Interim Financial Reporting".
Conclusions Relating to Going Concern
Based on our review procedures, which are less extensive than those performed in an audit as described in the Basis for Conclusion section of this report, nothing has come to our attention to suggest that management have inappropriately adopted the going concern basis of accounting or that management have identified material uncertainties relating to going concern that are not appropriately disclosed.
This conclusion is based on the review procedures performed in accordance with this ISRE, however future events or conditions may cause the entity to cease to continue as a going concern.
Responsibilities of the directors
The directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority.
In preparing the half-yearly financial report, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's Responsibilities for the review of the financial information
In reviewing the half-yearly report, we are responsible for expressing to the Company a conclusion on the condensed set of financial statements in the half-yearly financial report. Our conclusion, including our Conclusions Relating to Going Concern, are based on procedures that are less extensive than audit procedures, as described in the Basis for Conclusion paragraph of this report.
Use of our report
This report is made solely to the company in accordance with guidance contained in International Standard on Review Engagements 2410 (UK) "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Financial Reporting Council. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company, for our work, for this report, or for the conclusions we have formed.
Ernst & Young LLP
Birmingham
3 December 2025
GLossary
Alternative performance measures
The Directors use Alternative Performance Measures (APMs) as they believe these measures provide additional useful information on the underlying trends, performance and position of the Group. These measures are used for performance analysis. The APMs are not defined by IFRS and therefore may not be directly comparable with other companies' APMs. These measures are not intended to be a substitute for, or superior to, IFRS measures.
The majority of the Group's APMs are on a pre-IFRS 16 basis. This aligns with the management reporting used to inform business decisions, investment appraisals, incentive schemes and banking covenants.
To ensure APMs are balanced between Financial and Non-Financial performance, and to align to current business segments, 4-Wall EBITDA % has been removed.
EBITDA, Adjusted EBITDA and Adjusted EBIT Margin
For each of these areas as defined in this Glossary, the Group shows the measures as a percentage of Group revenue.
Why used
Profitability as a percentage of Group revenue is shown to understand how effectively the Group is managing its cost base.
Reconciliation to IFRS measures
£million
H1 FY26
H1 FY25
Revenue
845.1
784.8
Net Margin
298.7
284.3
Net Margin %
35.3%
36.2%
EBITDA (Unadjusted)
94.4
92.1
EBITDA margin
11.2%
11.7%
Adjusted EBITDA
90.8
87.3
Adjusted EBITDA margin
10.8%
11.1%
Adjusted EBIT (Segment profit)
68.5
66.2
Adjusted EBIT margin
8.1%
8.4%
Adjusted Earnings Before Interest and Tax (Adjusted EBIT)
Operating profit before exceptional items and IFRS 16 impact.
Why used
Measure of profitability that excludes one-off exceptional costs and IFRS 16 adjustments to allow for comparability between years. This measure links to management incentives in the financial period.
Reconciliation to IFRS measures
Reconciled in note 2 to the Interim Condensed Consolidated Financial Statements.
Adjusted Earnings Before Interest, Tax, Depreciation and Amortisation (Adjusted EBITDA)
EBITDA before exceptional items presented in the Group's Interim Condensed Consolidated Income Statement. Shown on a continuing basis and before the impact of IFRS 16.
Why used
Measure of profitability that excludes one-off exceptional and non-underlying items and IFRS 16 adjustments to allow for comparability between years. This measure links to management incentives in the financial period.
Reconciliation to IFRS measures
Reconciled in note 2 of the Interim Condensed Consolidated Financial Statements.
Adjusted Earnings Per Share (Adjusted EPS)
Basic Earnings Per Share before exceptional items and IFRS 16 impact.
Why used
Measure of profitability that excludes one-off exceptional items and IFRS 16 adjustments to provide comparability between years. This measure links to management incentives in the financial period.
Reconciliation to IFRS measures
Reconciled within note 7 of the Interim Condensed Consolidated Financial Statements.
Adjusted profit before tax (Adjusted PBT)
Profit before tax before exceptional items and IFRS 16 impact.
Why used
Measure of profitability that excludes one-off exceptional items and IFRS 16 adjustments to provide comparability between years.
Reconciliation to IFRS measure
£million
H1 FY26
H1 FY25
Segment profit (as reconciled in note 2 of the Interim Condensed Consolidated Financial Statements)
68.5
66.2
Net finance costs excluding exceptional items (note 5 of the Interim Condensed Consolidated Financial Statements)
(18.5)
(18.4)
IFRS 16 lease interest (note 5 of the Interim Condensed Consolidated Financial Statements)
12.8
11.1
Reversal of pre-IFRS 16 onerous lease interest
(0.2)
-
Adjusted profit before taxation
62.6
58.9
Average selling price (ASP)
Revenue (including sales related taxes) generated in a period from sales of a product category divided by the total number of units of such products sold in such period.
Why used
Measure of sales performance.
Reconciliation to IFRS measures
Not applicable.
Constant currency basis
Results for the period had the exchange rates remained constant from the comparative period.
Why used
Measure of growth that excludes the impact of foreign exchange.
Reconciliation to IFRS measures and Adjusted EBIT
Revenue
(£/US$ million)
H1 FY26 Group revenue (£)
845.1
H1 FY26 US revenue ($)
550.2
H1 FY26 US revenue (£) @ HY26 exchange rate
408.7
H1 FY26 US revenue (£) @ HY25 exchange rate
426.2
H1 FY26 Group revenue (£) at constant currency
862.6
Adjusted EBIT
(£/US$ million)
H1 FY26 Group Adjusted EBIT (£)
68.5
H1 FY26 US Adjusted EBIT ($)
54.7
H1 FY26 US Adjusted EBIT (£) @ HY26 exchange rate
40.6
H1 FY26 US Adjusted EBIT (£) @ HY25 exchange rate
42.3
H1 FY26 Group adjusted EBIT (£) at constant currency
70.2
H1 FY26 exchange rate
£1:$1.35
H1 FY25 exchange rate
£1:$1.29
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA)
EBITDA before exceptional items presented in the Group's Interim Condensed Consolidated Income Statement. Shown on a continuing basis before the impact of IFRS 16 and showroom opening and closing costs. These costs include rent (pre-IFRS 16), rates, payroll and other costs associated with the opening or closing of showrooms, or during closures when refurbishments are taking place.
Why used
Measure of profitability that excludes one-off exceptional and non-underlying items, IFRS 16 adjustments and showroom opening and closing costs to allow for comparability between years.
Reconciliation to IFRS measures
£million
H1 FY26
H1 FY25
Adjusted EBITDA
90.8
87.3
Showroom opening and closing costs
3.6
4.8
EBITDA (unadjusted)
94.4
92.1
Exceptional items
Items that in the judgement of the Directors need to be disclosed by virtue of their size, nature or incidence, in order to draw the attention of the reader and to show the underlying business performance of the Group.
Why used
Draws the attention of the reader and to show the items that are significant by virtue of their size, nature or incidence.
Reconciliation to IFRS measures
Disclosed in note 4 of the Group's Interim Condensed Consolidated Financial Statements.
Free cash flow
Cash flow shown on a pre-IFRS 16 basis excluding expansionary capex, acquisitions of subsidiaries, exceptional items, financing activities and the purchase of own shares.
Why used
Represents the cash generated from operations including maintenance of capital assets. Demonstrates the amount of available cash flow for discretionary activities such as expansionary capex, dividends or acquisitions.
Reconciliation to IFRS measures
£million
H1 FY26
H1 FY25
Net decrease in cash and cash equivalents
(35.8)
(4.5)
Net financing cash flow
81.8
(72.7)
Interest paid
(6.8)
(6.4)
Lease payments
(41.3)
(38.6)
Acquisitions
9.5
106.9
Exceptional items - cash
4.1
2.7
Expansionary capex
37.3
43.6
Disposal of property, plant and equipment
(0.4)
(2.7)
Free cash flow
48.4
28.3
Free cash flow conversion
Free cash flow divided by Adjusted EBITDA.
Why used
Measurement of the Group's ability to convert profit into free cash flow.
Reconciliation to IFRS measures
Free cash flow of £48.4 million divided by Adjusted EBITDA of £90.8 million shown as a percentage.
Liquidity headroom
Liquidity headroom is unrestricted cash plus undrawn available facilities.
Why used
Liquidity headroom shows the amount of unrestricted funds available to the Group.
Reconciliation to IFRS measures
£million
H1 FY26
H1 FY25
Multicurrency revolving credit facility
275.0
225.0
Term loan ($125.0 million USD at 26 October 2025)
93.9
88.7
Total facility
368.9
313.7
Facility drawn
(175.7)
(230.0)
Unrestricted cash
44.3
93.6
Total headroom
237.5
177.3
Net debt
Total borrowings (excluding capitalised transaction costs) less cash and cash equivalents and excludes IFRS 16 lease liabilities.
Why used
Measures the Group's indebtedness.
Reconciliation to IFRS measures
Reconciled in note 11 of the Interim Condensed Consolidated Financial Statements.
Net margin
Revenue less inventory recognised as an expense, commissions paid to the providers of interest-free credit and inventory provision movements.
Why used
Measures the profit made from the sale of inventory before showroom or overhead costs.
Reconciliation to IFRS measures
£million
H1 FY26
H1 FY25
Revenue
845.1
784.8
Inventory recognised as an expense
(550.8)
(507.1)
Other inc. supplier incentives
4.4
6.6
Net margin
298.7
284.3
Return on Capital Employed (ROCE)
Return on Capital Employed (ROCE) is defined as Adjusted EBIT divided by average capital employed, calculated on a Last Twelve Months (LTM) basis. Average capital employed is total assets less current liabilities excluding IFRS 16 lease liabilities.
Why used
ROCE demonstrates the efficiency with which the Group utilises capital. This measure links to management incentives in the financial period.
Reconciliation to IFRS measures
LTM Adjusted EBIT of £152.0 million divided by the average capital employed, which is calculated as follows:
£million
LTM to 26 October 2025
LTM to 27 October 2024
Pre-IFRS 16 total assets
1,147.2
1,180.1
Pre-IFRS 16 current liabilities
(271.4)
(298.4)
Capital employed
875.8
881.7
Average capital employed
878.7
772.3
The LTM to 27 October 2024 balances have been restated, in line with IFRS 3 'Business combinations', to reflect the finalisation of the provisional fair values of Roberto Coin Inc. and Hodinkee, Inc. Further detail is disclosed within note 15 of the Interim Condensed Consolidated Financial Statements.
Other definitions
Expansionary capital expenditure/capex
Expansionary capital expenditure relates to new showrooms, offices, relocations or refurbishments greater than £250,000.
Luxury watches
Watches that have a Recommended Retail Price greater than £1,000, or brands considered to be luxury by virtue of the materials used and craftmanship. In the period, the luxury watches definition has been updated to include the Tissot brand.
Luxury jewellery
Jewellery that has a Recommended Retail Price greater than £500.
Showroom maintenance capital expenditure/capex
Capital expenditure which is not considered expansionary.
IFRS 16 Adjustments
The following tables reconcile from pre-IFRS 16 balances to statutory post-IFRS 16 balances.
H1 FY26 Interim Condensed Consolidated Income Statement
£million
Pre-IFRS 16 and exceptional items
IFRS 16 adjustments
Exceptional items
Statutory
Revenue
845.1
-
-
845.1
Net margin
298.7
-
-
298.7
Showroom costs
(146.9)
33.5
-
(113.4)
Overheads
(57.4)
-
(0.9)
(58.3)
EBITDA
94.4
33.5
(0.9)
127.0
Showroom opening and closing costs
(3.6)
2.2
-
(1.4)
Adjusted EBITDA
90.8
35.7
(0.9)
125.6
Depreciation, amortisation, loss on disposal and lease modifications
The H1 FY25 Interim Condensed Consolidated Balance Sheet has been restated, in line with IFRS 3 'Business combinations', to reflect the finalisation of the provisional fair values of Roberto Coin Inc. and Hodinkee, Inc. Further detail is disclosed within note 15 of the Interim Condensed Consolidated Financial Statements.
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